President Tinubu Sets Up Tax Reforms Committee, Chaired By Taiwo Oyedele

July 7, 2023

President Bola Tinubu has approved the establishment of a Presidential Committee on Fiscal Policy and Tax Reforms, in line with his promise to remove all barriers impeding business growth in Nigeria.

The committee will be chaired by Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), Taiwo Oyedele.

The Committee, according to a statement today, July 7, by the Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, will comprise experts from both the private and public sectors and have responsibility for the various aspects of tax law reform, fiscal policy design and coordination, harmonization of taxes, and revenue administration.

Quoting the Special Adviser to the President on Revenue, Adelabu Zacch Adedeji, the statement said that President Tinubu recognizes the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the government and the economy.

”Nigeria ranks very low on the global ease of paying taxes while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.

”This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development.

”While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative,” he said.

Adedeji outlined the key challenges in Nigeria’s tax system to include multiple taxes and revenue collection agencies, fragmented and complex tax system, low tax morale, high prevalence of tax evasion, high cost of revenue administration, lack of coordination between fiscal and economic policies, and poor accountability in the utilization of tax revenue.

The statement said that the establishment of the committee reflects President Tinubu’s commitment to addressing these challenges and bringing about transformative reforms in fiscal policy and taxation.

It said that the committee’s primary objective is to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.

“These efforts will not only improve Nigeria’s revenue profile but also create a more conducive and internationally competitive business environment.

”Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without stifling investment or economic growth.

”It should be noted that this committee will not only advise the government on necessary reforms, but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration.”

Taraba Governor Declares Free Primary, Secondary Education

Editorial staff

July 7, 2023

Governor Agbu Kefas of Taraba State has declared free education in all primary and secondary schools with effect from the next academic session to cushion the effects of the removal of subsidy on Premium Motor Spirit known as petrol.

The decision came today, July 7, barely 48 hours after the state government announced reduction of university school fees by 50 per cent to cushion the current hardship in the country.

The governor said that starting from the next academic session, primary and secondary education in Taraba State would be free.

Spokesperson to the governor, Emmanuel Bello, in a statement, said Kefas made the declaration at the Ebenezer Primary School in Wukari as part of his assessment tour.

The governor stressed that it was the government’s responsibility to bear the expenses and that students should not be subjected to any fees.

He said that apart from fulfilling a campaign promise, the hardship occasioned by the removal of the fuel subsidy has made the move imperative.

On Wednesday, during his visit to the Taraba State University in Jalingo, Kefas announced the removal of school fees in the university, saying that quality education remained his main priority.

Kefas said that he had since declared a state of emergency in the education sector and was also committed to free education at the primary and secondary school levels.

Many of the University students expressed joy at the development, saying that the reduction in fees would greatly enhance their lives.

“Some parents said the hardship occasioned by the removal of fuel subsidy has made payments of school fees difficult. They said the slash has raised their hopes.”

Source: The PUNCH.

MTN Group Chairman Announces $3.5 Billion Investment In Nigeria’s Economy

Editorial staff

July 7, 2023

Group Chairman of one of the leading telecommunications outfits, MTN, Mcebisi Jonas, has announced plan to invest $3.5 billion in the Nigeria’s economy over the next five years.

Jonas, who led a delegation of the company’s top management team on a visit to President Bola Tinubu today, July 7, at the Presidential villa in Abuja, said the company has a broader vision of becoming a pan-African company by moving investments from the Middle East and focusing more on Africa.

He said that Nigeria will be top in its priority because it gets the highest return on investment.

Jonas congratulated the President for the upswing of interest in the country within a short period since he assumed office, May 29, 2023.

He promised to support in mobilising other investors with about $1.5 trillion to look towards Nigeria, where reforms had been styled to favour business and encourage inclusive development.

“The message you have given us is that Nigeria is investible, and with your election, we are seeing decisive, prompt and keen interest in structural reforms.”

This was even as President Tinubu assured the manufacturing and service sectors that more reforms will be unfolded to enable efficiency and attract investments.

He told the visitors that the ongoing economic ‘‘revolution’’ will be deliberately steered to capture and favour teeming youths in the country.

“We have a responsibility to revolutionize the economy so that our youths can share in the prosperity of the nation, otherwise we are only waiting for the dreams to be charted.

“If you have any problems or impediments do let us know. We are ready to remove bottlenecks to investments in the economy.’’

The President acknowledged the sweeping changes across the world, largely driven by technology.

President Tinubu said that the growing rural-urban migration can only be controlled with more investments in digital technology that will directly improve healthcare systems and education for the poor.

“I am happy you are moving from Corporate Social Responsibility to be more incisive and inquisitive with technology so that we can see how we can partner structurally,’’ the President stated.

“You can do a lot for the economy by partnering with us. We believe no one can succeed alone. The structural adjustments we are making are to ensure we face the right direction and arrive at a destination that caters for our people.

“You and I will make sure that the people have a share of that prosperity. We will, together, build a well-informed society. We have to re-assess the journey. I am glad that the stock market is responding positively to the structural adjustments.’’

The Group President/CEO of MTN, Ralph Mupita, Chairman of MTN Nigeria, Ernest Ndukwe and Chief Executive Officer, Olutokun Karl Toriola were part of the visitors.

Tinubu To Senegalese President: History Will Be Kind To You For Shunning 3rd Term

Editorial staff

July 7, 2023

The decision of the Senegalese President, Macky Sall, not to seek a third term in office after the end of his tenure has excited President Bola Ahmed Tinubu of Nigeria.

President Tinubu, who applauded the decision of the Senegalese President, said history would be kind to him.

There had been protests in Senegal in the past few weeks following speculations about a third-term ambition of President Sall, who is moving towards the end of his second term in office.

President Sall is due to complete his second term of office in 2024.

But, President Sall on Monday, told the people of Senegal, a country considered as one of the most stable democratic governments in Africa, that he would not offer himself as a candidate for the February 25, 2024, presidential election in his country.

A statement today, July 7 by Dele Alake, a Presidential spokesman, quoted President Tinubu, as saying that President Sall has put the interest of his country, the peace, and stability of the West African region above his personal interest.

“The decision of President Mack Sall that he will abide by the constitutional term of office and not offer himself for a third term in Senegal is heart-warming.

“It has brought great joy and relief. As a Democrat, I must commend my brother for his statesmanship.

“With this singular decision, President Sall chose the stability, security, and economic well-being of his people over and above narrow personal interest.

“The impact of this important decision will be felt beyond the shores and borders of Senegal and across our West African sub-region.

“President Sall has demonstrated that leadership is about serving the people honorably and quitting the stage when the constitutionally-stipulated time is up.

“By his example, democracy and respect for people power will take stronger roots in Africa and will continue to flourish.”

Subsidy Removal: Abuja NUJ Counts Hardships Nigerians Are Passing Through

Editorial staff

July 7, 2023

The Nigeria Union of Journalists (NUJ), Federal Capital Territory (FCT), Abuja, has expressed concern over what it called “geometric rise” in public transportation as a consequence of the removal of fuel subsidy.

The Union said that only a few workers in the public and private sectors are now facing the challenge of commuting daily to their workplaces, while others have abandoned their places of meagre earning due to their inability to finance their transportation.

In a statement today, July 6, jointly signed by the acting chairman, Òsárétín Òsádébàmwén and the secretary, Ochiaka Ugwu, the Union said that while it subscribes to a better Nigeria, requiring sacrifices, such should not be made to threaten the survival of the people.

It regretted that the subsidy removal and the resultant rise in fuel price has led to intra-city transportation, rising to as much as 150 percent.

“Owing to the dire situation, the NUJ demands for immediate intervention by the government to stave off the building of possible social tension and its attendant consequences.

“For the NUJ-FCT, the immediate measure by the Federal government and the FCT Administration is the roll out of transport palliative to cover all intra-city routes to ameliorate the sufferings of Nigerians.

“The Union recognizes the fact that President Bola Tinubu has kept one of his campaign promises to remove fuel subsidy and channel the revenue loss to other social welfare programmes, we believe that the provision of transport palliatives is an urgent intervention that will go a long way.”

INEC Drags Its Suspended Adamawa Commissioner, Barr. Ari To Court Over Misconduct

Editorial staff

July 7, 2023

The Independent National Electoral Commission (INEC) has filed a six-count charge against the suspended Resident Electoral Commissioner (REC) deployed for Adamawa State, Barrister Hudu Yunusa Ari.

The case was filed at the Adamawa State High Court sitting in Yola, over his unprofessional conduct in the recently concluded Governorship election in the state.

The Chairman of the Information and Voter Education Committee (IVEC) and National Commissioner, Festus Okoye, made this known in a statement today, July 6.

It would be recalled that on Tuesday 4th July 2023, the INEC Chairman, Professor Mahmood Yakubu, during a meeting with RECs, confirmed the receipt of case files from the Nigeria Police, following the conclusion of investigation into alleged electoral offences committed during the 2023 General Election, including the one involving Ari, assuring Nigerians of immediate action on the matter.

Okoye said: “as provided by Section 145(1) of the Electoral Act 2022, an offence committed under the Act shall be triable in a Magistrate Court or a High Court of a State in which the offence is committed, or the Federal Capital Territory, Abuja.

“Furthermore, Section 145(2) of the Act provides that a prosecution under the Act shall be undertaken by legal officers of the Commission, or any legal practitioner appointed by it.

“Having reviewed the case file from the Police which established a prima facie case against Barr. Hudu Yunusa Ari, the Commission has filed a six-count charge against him at the Adamawa State High Court sitting in Yola. Consequently, the Court has fixed Wednesday 12th July 2023 for commencement of trial.”

Okoye also affirmed that the Commission is working with the Nigerian Bar Association (NBA) for the diligent prosecution of other cases.

Ex Ekiti Gov, Fayose, Storms Aso Rock; Says He Doesn’t Regret Supporting Tinubu

Editorial staff

July 7, 2023

Former Governor of Ekiti State, Ayo Fayose has made it clear that though he is still a member of the opposition People’s Democratic Party (PDP) but has decided to support President Bola Ahmed Tinubu, who emerged from the All Progressives Congress (APC), which has been in power at the centre since 2015.

Speaking to newsmen shortly after a private audience with the President at Aso Rock Presidential villa, Abuja Fayose said: “let me tell you, I will never join the APC, but I don’t have to be a party man to support good product.

“Whosoever is in this saddle in Nigeria, we must stand by him. We must give our best and I want to tell you that people like me, others like Governor Wike, Governor Makinde and other wonderful Nigerians, have made up our minds that it is better to stand with a man of vision and to stand with Asiwaju Bola Ahmed Tinubu, for the betterment of our country.”

Fayose said that the steps so far taken by President Tinubu can readily give us the direction of his government.

“Elections have come and gone, without prejudice to the courts.

“But it’s no more time for campaign or selling a political party, it is time to govern Nigeria for the benefit of children yet unborn and those of us that are still here and to equally let you know that I had a very wonderful time with the President.

“You will see him very alert and very clearly in the direction he wants to take the country, but he can’t do it alone, he needs all of us.”

On whether he is still a member of the PDP and whether he would accept appointment from President Tinubu, Fayose said: “let me say again, unequivocally, I have said it in several fora, I will never be a member of the APC. I am a PDP man. If anything takes me out of the PDP or if I don’t do partisan politics again, I will be the husband of my wife at home.

“It is not a matter of party. Nigeria is bigger than all political parties and all interest groups. I want to tell you again, you don’t have to take an appointment to make a difference.

“Nigeria is about 200 million population. We all can’t be on appointment, whosoever makes it, either in the APC or in the attempt to have a government of national unity, it’s all about service.

“May I say to you expressly, I am not a desperate person at all, but I don’t shy away and I will never shy away to give direction wherever I am. I am with this government, without apologies.

“Majority in the past can tell you, even when I was a sitting governor in Ekiti, I’ve always spoken well of Asiwaju Bola Ahmed Tinubu.

“I never knew and may I say to you, the agenda that I joined the G5 to pursue is to have a Southern President. Today, a Southern President has emerged and we’re all with him.”

Fayose said that if Asiwaju turns back on his promise and all he said when he was campaigning, “I will be the first to talk. I am not timid and I don’t shy away from facing challenges.

“But the man I have seen today, I don’t eulogize and I don’t praise to curry favour, I am no more a small boy. Let me tell you, the man I saw today and for the actions we have seen, means well for Nigeria.

“But if there’s any reason to derail, it will not be deliberate and we will all be able to draw his attention to his brief as the President and Commander-in-Chief of our country.

“Let us be optimistic, let us be hopeful and let us believe that there will be a turn around.”

The former Ekiti governor debunked the notion that being in opposition political party, he should not have supported the government, saying: “I am doing more than opposition.

“If the government in power is not doing the right thing, we’ll be courageous enough to tell the government in power. That was why I told you, when Buhari was President in this country I didn’t shy away from telling him the truth and the government.

“May I say to you that I have said here, that if the President, Ahmed Bola Tinubu, is shying away from his brief, I, Ayo Fayose, Oshoko, will be courageous enough to tell him.

“You see, I am 63, I am not a small boy anymore. I stand by what I say. I want to assure you that you don’t have to be in a political party to stand up and in opposition.

“But you don’t oppose when you don’t need to oppose though. You don’t fight an innocent person if that person has not done anything wrong.”

Embattled Super Cop, Abba Kyari, May Go Home On N50 Million Court’s Bail

Editorial staff

July 7, 2023

Super police officer and former Head of the police Rapid Response Team, Abba Kyari, may go back home soon if he can fulfill the bail conditions slammed on him by a Federal High Court sitting in Abuja.

One of the conditions is his admission to a N50 million bail, in a charge filed against him and two others by the National Drug Law Enforcement Agency (NDLEA).

The NDLEA had filed the 24-count charge marked: FHC/ABJ/CR/408/2022 against Kyari and two of his siblings – Mohammed Baba Kyari and Ali Kyari – in respect of which they were arraigned last month.

Justice James Omotosho, in a ruling today, July 6, granted conditional bail to Abba Kyari with two sureties in like sum.

Justice Omotosho also ordered that the sureties must have property worth N25 million each within the Federal Capital Territory (FCT), among other conditions.

The judge held that even when Kyari meets the bail conditions, the endorsement of his release warrant would be subject to development in a sister case pending before Justice Emeka Nwite in which he is being tried with four others on alleged drug deal.

Justice Omotosho said that despite the Kuje prison jailbreak by terrorists on July 5, 2022, Kyari refused to escape where about 90 per cent of the inmates escaped freely.

The judge said that NDLEA did not controvert the argument, adding that the failure to counter the submission was an admission by the anti-drug agency.

Justice Omotosho held that the offence with which he was being charged is a bailable one.

Kyari had been denied bail twice in the other case pending before Justice Nwite.

His two siblings were earlier granted bail by Justice Omotosho.

President Tinubu Worries Over Delay In Conducting Census In Nigeria

Editorial staff

July 7, 2023

President Bola Ahmed Tinubu has expressed concern over the delay in conducting another enumeration in Nigeria since the last exercise done in 2006.

Speaking at the Presidential villa, Abuja today, July 6, after receiving a briefing from the Chairman of the National Population Commission, Nasir Isa Kwarra, the President advised the NPC to view the delay as an opportunity to cash in on the advantages of the current electronic and digital age.

”It is disappointing that up until now we have not been able to conduct another enumeration of our people. I hope that this delay will be converted to a great opportunity in this electronic and digital age.

”The challenge is yours and I hope that during the demarcation you did, you would have noticed the migration of people to urban centers because of the extreme poverty and unemployment.

”Digitalizing the process will make your job easier and I don’t see why we don’t, by now, have a reliable database in Nigeria to identify ourselves and ascertain our numbers for planning purposes and in time of disaster.

”I have listened to you and we will support you. Accuracy and integrity of your data is very important to Nigerians and for our national economic development programmes.

”We will support you but you have to be prudent and be determined to make a name for yourself. Goodluck,” the President said.

In his remarks, the NPC Chairman said that the Commission is on the verge of conducting the final training for the Census before they were caught up with the transition programme for a new government and funding challenges, necessitating the postponement of the exercise.

He briefed the President on the Implementation Status of the 2023 Population and Housing Census, requesting the issuance of a proclamation for a new Census date later this year or early next year.

Kwarra also highlighted the funding challenges faced by the Commission, saying they were waiting on the President to support NPC and give the go-ahead for the conduct of the census.

He said that the commission had demarcated the entire country, stating that only one or the two places were left and that this would be done soon.

Kwarra said that the commission had also trained 60,000 instructors that would further train enumerators and supervisors.

In a paper titled “Implementation Status of the 2023 Population and Housing Census,” the NPC requested the release of the allocated N31 billion capital allocation, in the 2023 budget, for preparatory activities.

The commission put the total cost of the Census, after a methodology review, at N546.72 billion.

Kwarra also requested the President’s approval for an additional N225.2 billion to cover training and fieldwork allowances, retraining of trainers, and the conduct of a second-class Trial Census.

He appealed to the President to approve and convene a stakeholders meeting with the organized private sector and foreign partners to galvanise funds for the Census.

Kwarra informed the President that Nigeria has developed a database that can be useful in national planning, infrastructure development, and revenue generation for the government.

”NPC having completed Mapping in March 2022, tested the market with the geospatial data by making it available to researchers at a ‘test price’ where it generated over N50 million through REMITA.

”To this end, with a full integrated spatial and statistical data, government geospatial policy and coordination, NPC can generate up to 14 billion dollars and further save a lot of resources for the nation through automation of economic planning by 2028.”

President Tinubu Suspends 5 Percent Excise TAX On Telecom Services, Excise Duties

Editorial staff

July 7, 2023

President Bola Tinubu has signed into law the suspension of the five percent Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.These are part of the four Executive Orders which was signed on Thursday, 6 July.

The Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, announced this on Thursday while briefing journalists at the State House in Abuja.

He said that the President also signed the Finance Act (Effective Date Variation) Order 2023, which now defers the commencement date of the changes contained in the Act from 23 May, 2023, to 1 September, 2023.

According to the presidential spokesman, this is to ensure adherence to the 90-day minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

President Tinubu also signed The Customs, Excise Tariff (Variation) Amendment Order, 2023, shifting the commencement date of the tax changes from 27 March, 2023, to 1 August, 2023 and also in line with the National Tax Policy.

The President also ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles as well as the suspension of Import Tax Adjustment levy on certain vehicles.

Alake explained that the President issued these orders to ease the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors.

He reiterated the President’s commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.

He also noted that President Tinubu’s administration will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country.

The President assured Nigerians that there will not be further tax raise without robust and wide consultations undertaken within the context of a coherent fiscal policy framework.

This order officially puts into signing the move carried about by former president Muhammadu Buhari-led administration, which in late March announced the exemption of the Nigerian digital economy from the proposed 5 per cent excise duty introduced in 2022.

Then Minister of Communications and Digital Economy, Mr Isa Pantami, opposing the move, said this was in line with the recommendations of the committee constituted to review the applicability of the duty to the telecom sector, which is considered already overburdened with taxation and sundry levies.

According to a statement, Mr Pantami said the justifications for the exemptions were based on three premises.

First was the fact that operators in the telecoms sub-sector of the digital economy industry currently pay no fewer than 41 different categories of taxes, levies and charges.

Another was that telecoms have continued to be a major contributor to the Nigerian economy in terms of Gross Domestic Product Contribution (GDP), and last was the fact that the telecom sector was the only sector where the cost of service has been stable and in many cases continued to go down over the past years.

In August 2022, the federal government announced that it would begin implementing the proposed excise taxes on telecommunications and beverage services in 2023.

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